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Mrs. B - Economics Unit 1 Review Flashcards | StudBud
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Mrs. B - Economics Unit 1 Review
Mrs. B - Economics Unit 1 Review
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Unit 1 Economics Review
Flashcards
26 cards
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Practice quiz
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Questions
26
Answers
1
The production possibility curve reflects the production mix attainable given
Broad Economic Goals
current resources and technology
the opportunity costs
two combinations of goods
2
The priority ranking of our nation’s economic goals changes over time and administrations
False
True
3
When you make decisions by thinking at the margin, what are you actually doing?
choosing one and not looking at other options
looking at several options, considering one more or one less of something
eliminating all options
looking at the opportunity cost of couple of options then making a decision
4
Positive and negative externalities are called market failures because
costs and benefits aren't factored into prices
costs and benefits exceed the prices
third party incurred costs
third party received benefits
5
What are the three ways government can intervene in the market?
regulation, taxes, technology
taxes, technology, subsidies
regulation, subsidies, technology
taxes, regulation, subsidies
6
What was the essence of what Adam Smith believed about markets
markets don't work if left on their own because of the invisible hand
markets work best when government uses its hand to help it along
markets work best when everyone puts the common good first
markets work best due to the invisible hand of self interest & competition
7
Which of the following is a strength of a market economy?
No one will live in poverty unless they choose to live that way.
It provides centralized planning
It gives producers and consumers a great deal of freedom.
It offers guaranteed lifetime employment.
8
The most fundamental economic problem is
Scarcity
Dealing with shortages
Opportunity Costs
Making good choices
9
What are the factors of production?
Natural Resources, Land, Capital, Entrepreneurship
Land, labor, capital, Entrepreneurship
Land, Labor, Capital, Enterprise
Natural Resources, Land, Capital, Enterprise
10
How does a business invest in its human capital?
by increasing the number of workers
by investing in machines to help workers be more productive
by investing in skills and education of workers
by increasing the salaries of workers
11
A truck used by a plumber is a what factor of production
human capital
labor
land
capital
12
Which statement is true about Broad Economic Goals?
They're not always mutually compatible, there's no oppor cost to choosing
They are mutally compatible, there's no opportunity cost in choosing
They're not always mutually compatible, choosing involves opportunity costs
They are mutally compatible, choosing involves opportunity costs
13
Requiring companies to purify contaminated water is an example of a priority of what national economic goal?
economic equity
economic stability
economic efficiency
economic freedom
14
This system uses markets as the primary means of organizing and coordinating production with no government involvement
command
mixed
traditional
market
15
When analyzing an economic problem, economists consider what most heavily
economic goals and values
available alternatives
opportunity costs
marginal benefits
16
what is opportunity cost?
Choosing a more valuable alternative.
Picking the best alternative because of scarcity.
The value of the thing you give up by doing something else.
Making a choice between two things that you really want
17
When an economy produces more houses and fewer apartment buildings, it is answering the
which one question
what question
for whom question
how question
18
Economics is best defined as the study of how people, businesses, governments and societies
make choices to cope with scarcity
choose abundance over scarcity
use their infinite resources
attain wealth
19
Positive and negative externalities are called market failures because
costs and benefits aren't factored into prices
costs and benefits exceed the prices
third party received benefits
third party incurred costs
20
The possible combinations of two select goods or services that can be produced at a given time with the resources
trade-offs
production possibilities
production costs
factors of production
21
The difference between scarcity and shortage is
they are both the same concept using different terms
scarcity is temporary and shortage is permanent
scarcity is based on needs, shortages are based on wants
scarcity is permanent and shortage is temporary
22
When China builds a dam using few machines and a great deal of labor, it is answering the
what question
where question
how question
for whom question
23
Zoning regulations are an example of
a pure market economy.
the lack of government involvement in economic activities.
a free market economy.
the role of government in regulating economic activities.
24
What is an example of a positive externality?
repainting the inside of your own home
water pollution from factory production
a neighbor who paints his house and landscapes his yard
a bag of chips that is big enough for two people
25
What are the three economic questions?
What to produce, who will produce, how to produce it?
What to produce, for whom to produce, how to produce it?
What to produce, who will produce, how to distribute profit?
What resources to use, for whom to produce, how to produce?
26
How goals are prioritized & how successful an economy is at attaining them influences the quality of life for society
False
True
